>>. >> shep: don't mess with grandma. cops in california searching for two suspects in a day time smash and grab jewelry store heist. security karm caught it all. it happened sherman oaks. they walked in with hammers and started breaking glass and reportedly grabbed watches. 81-year-old store owner ran out and stopped them but they pushed him away and ran out the door. the same guys were in the store the day before pretending to customers. don't mess with him. that is it for the "b" and big day on the dow. it was up more than 200. up 175 plus on the session. not a bad day. i'm shepard smith. that is it for studio "b" and back with the fox report, 7:00 eastern and here is cavuto. >> neil: thanks. as the clock ticks down will

they ever shut up? more pointing fingers and pointing to solutions. it's clear, it's now. it's time. if these guys won't be heroes, yep, time for yours truly to be heroic. because if you've had enough with sequestration, frustration. i warn you washington, you wouldn't do something i would and today i have. relax, america, because the hero has brought the solution and spandex. i warned you. >> welcome, i'm neil cavuto, about the spandex, i had some of frightened, didn't i? and president obama is going to solve this mess by announcing he is holding the first face-to-face meeting with democratic and republican leaders on friday. there are two problems. one, it's friday by which of

this time has kicked in and it's silly. up until now all he has been doing is kicking the other side's teeth in. time to get something done now because we have the plans to stop all of this nonsense right now. we have the guy espousing it and congressman tom price, part of my avenger's collection along with marco rubio. it would rescind money and it's just gathering dust. $45 billion of that dust. that is a lot of dust and more than half the cuts that everybody is screaming that will take effect in days. >> i'm going to stop pointing you, this is just good. >> we are cooking up even more savings. senator tom coburn and he says it's time to cut out on grill sergeants on the pentagon channel. i didn't even know the pentagon had a channel.

beef jerky from france is so the chopping blocks and how best for democracy. but leave you it to come up with $70 billion of cuts at the department of defense. senator coburn says if you scrap 1300 programs that duplicate each over you could save another $364 billion. it doesn't end there. our own lizzie apparently federal workers aren't doing federal work. we'll get to the bottom of that. we do know that the federal feet warmers are costing $156 million a year and then there is army ranger lucas who says like the billions he says could be saved by cutting overlapping costs by drone technology and electronic warfare. in total more than $479 billion that the government could start cutting right now, that is more

than five times the cuts they are screaming about taking effect. first, tom on the unspent dough. congressman, i was surprised to see how much we're talking about? >> yeah, it's remarkable and the american people know this. we have a budget of $3.6 trillion. we've identified $45 billion that is what is called rescission money, that is money been appropriated along with senator rubio and it's sending in pots in different agencies, energy, education and transportation, unused money. what we ought to do is take that back and allow it to buy down part of the deficit. these are kinds of common sense things, common ground issues we ought to be working on doing the things the president says we can't get it done. >> neil: what amazes me washington would be having the

situation unsent money, when it gets in their hot hands it's gone. having said that, can you go back and take money that is already been earmarked -- pardon me, the term -- from it's intended use? >> you can but that is not what this is talking about. this is money that has been authorized and appropriated and the project ends or came under lower. >> neil: so you are not pulling the rug out from something that money that got out the door for a variety of reasons? >> that is exactly right. it's just sitting there. but on paper i can use that for deficit reduction. this is one of the many ideas that will help us decrease spending at the federal left level so we can get the economy back on track and creating jobs. >> neil: you know of all this -- i didn't know about the $45 billion which is half the money we're talking about to ease the so-called armageddon on

friday -- why wasn't that offered as a back-up plan when you were agreeing to this sequestration. when that was out there or did you just discover it? >> we offered this last year, as well. this is the kind of money that senator coburn has been talking about the past couple of years and talking about duplication but this is called rescission money, money that has been appropriated hasn't been spent and time to bring that home so we can work on balancing the budget. >> neil: congressman, thanks very much. now to fox business network, luz beds mcdonald, it's costing us. what do you got? >> we have data from personnel and management the federal agency, also americans for limited government.

they fined there are a lot of federal workers basically doing union work on the taxpayer's dime. you are going to see here, $156 million paid to these government work to do union work, $129 million in 2009, all told, 3.4 million hours federal workers doing union work. the irony, last we checked with the opm, by statute federal workers get their pay. unions can't negotiate to get increased benefits that is according to opm and opm has said that federal workers are not allowed to strike. it's unclear what these federal union workers are doing. when you drill into the data into the information that we have you see the department of

transportation, nearly 3 dozen workers making on average $138,000 to do federal union work. that is costing taxpayers $5 million. in those numbers, three new york air traffic controllers, get this, nearly $180,000 to do union work, also 17 epa workers get paid nearly $100,000 to do federal union work. that is costing taxpayers about $1.6 million. the irony, i am not sure what they are doing when they talk about doing union work because by statute that is how they get their pay and not allowed to strike. >> neil: thanks very much. wall street, funny way of showing it the dow is up 157 points today within about 90 points of an all time high that was last made on october 9th,

2007 before everything hit the fan. who knows what is going to happen in the future. maybe we are revisiting a different fan. steve from the "wall street journal," they know that friday is approaching as well as anybody, they are climbing despite it or because of it. what do you think? >> i never bought this idea that people on wall street and investors think that government spending is bad, cutting government is spending is bad for the economy. it's not. this is one of lessons from milton friedman, cutting spending is good for the economy and especially wasteful spending that you have been talking about. by the way, neil you just scratched the surface. there are hundreds and hundreds of other examples of this. i want to say this -- if tom price is right there is $50 billion that hasn't been spent, but that doesn't mean we should

do the sequester. now is the time for every federal agency, especially since they got 20% increases in the last four years, maybe to suck in their stomach and tighten their belts and find ways they can save on travel and other things. >> neil: i'm with you. a lot of people rip this whole sequestration thing. i don't have a problem if it guarantees in the end we'll have cuts. it's not pretty. it's not very organized. it's haphazard but in the scheme of things not to do the cuts and favor an approach would be more heinous. now when it comes to those $85 billion in cuts, republicans are trying to give the president more leeway, calling the bluff, mr. president we are going to cut airport security personnel and the rest. we'll give you a broader purview

within each government agency, something you can argue the president already got with the last government agreement, that it takes that issue off the table. what do you think of that? >> i thought that was very fascinating, they said i don't want to the flexibility. the same president for the last two weeks has been saying flames are going to fire and schools are going to be closed. i don't want the flexibility. i really don't understand thinks argument. i think what the president is saying, he thinks every single penny by every single agency is essential. he says i can't find any waste in the government. if he can't find it maybe we should hire lee iococo to find the waste. >> when folks like bob woodward, this is too histrionic and you have gone beyond the original agreement by throwing in something like revenues.

changing the proverbial goal posts. this is the case, i don't know some in the establishment now questioning whether the president has gone too far or scaring too much? >> i hope so. i fervently hope that the american people don't fall for this melodrama that somehow cutting to two-or 3 percent out of it is going to cause armageddon. if we can't cut $60 billion out of budget how in the world are we going to get a balanced budget. we have a trillion dollars in debt. how could we get near there if we can't make a first baby step. by the way, i saw you had bernie marcus last night.let's bring h. there is a guy that knows how to run a business. >> neil: you are right. steve, always a pleasure. best selling author and steve

moore. i just wanted to be clear. what we're talking about armageddon is not the way on friday leaving aside these cuts, it's fraction of a percent when you come to think of it $3.8 trillion budget, but half of those cuts are in outer years. then i wanted to think about the latitude that that has been given the president of united states to not enact the onerous cuts. he has much broader powers to make them a little less sensitive. don't go after the beef inspectors, maybe the department of agriculture, go in those installing picket fences on federal lands. you get my point. these are numbers. sadly, my friends, i want to remind you despite what you see in the media, these are the facts. >> forget about them being illegal. is it more illegal to spring them citing sequestration cuts

that haven't happened, january brewer what she is planning to -- jan brewer on what she is planning on telling the president now. it's not what you think.

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>>. >> neil: you thought jan brewer was fired out up back then. now, the administration is releasing a massive number of illegals. governor, first off the white house is saying, not the case. it's not the one behind this policy. first off, your reaction to it? >> well, when i learned of the comments that were being made, it's simply, what is it, ducking cover and blame someone else. it's outrageous. the whole situation is just appalling. >> neil:. >> who is going to take

responsibility? >> neil: apparently no one has. we do know a lot of the illegals who has been held on a variety of issues are released, now supposedly monitored but ahead of sequestration cuts. ahead of them we are already doing this. >> this is just unexplainable, unbelievable and it's appalling. the bottom line, what about the respect for the law abiding citizen and who is running this country? blame this person, blame that person, duck, cover. american people are fed up. >> neil: what are you going to do? if it happens in your state. there is so much search power you have, what can you do? >> i don't know what power i have but bottom line is we have all of this outrageous activity going on and releasing illegal

criminals bus this is not people that have been held for a reason. are they going to continue releasing them? >> neil: hasn't been a lot of them arrested a few are traffic violations but others are more serious stuff. you think they would separate them but bottom line, they are here illegally and should that be an issue period? >> we don't know who they have released and what they have been charged with and shall they going to continue releasing them. no one.... >> neil: they say they are being monitored, who is doing this? >> i have no idea. no one in the administration has contacted homeland security division. no one has contacted my office. no one has reached out. obviously they don't know what the heck is going on because they didn't know anything about it either. who is winning this country? >> neil: i'm not even sure.

if you are taking these people out and releasing them because you fear sequestration is coming down the line and going to cramp you anyway, you just release them, you are paying essentially to tag them and keep track of them while they are out in the world. that is cause for concern. >> they are not very good at tracking. >> neil: what i'm saying, i not adding up to me. as a numbers guy here, i think someone is making up some numbers. disavow me of my fears. >> i don't know how to disavow you of your fears. i think we should all be fearful of what is going on. we have a situation that no one is in charge, no one knows what anybody sells doing. no one is communicating with anybody. they are not respecting the taxpayer. it's outrageous, it's appalling and we need some communication.

we need some talk from the federal government. we deserve that. that is the least they can do. >> neil: what is really going on. >> it's duck and cover mode, blame somebody else. it's the typical blame someone else from the white house. >> neil: governor, thank you. >> thank you. >> neil: do you explain what is going on rather than disavow tell us what the heck is happening. now unions are threatening to close runways. all right because the judge is taking off.

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>>. >> neil: all right, forget the politicians, unions are upping the ante in the fearmongering.

latest, airport runways are going to shut down. forget about takeoffs. only thing taking off the number of flight delays and cancellations. judge napolitano is here. >> i wish i could say overruled because this is part of the president's fearmongering. this is part of his efforts, now he is conscripted his friends in the labor unions to scare the day lights out of public along with the other threats. soldiers aren't going to have bullets. the social security checks are going to be late. prisoners are going to be let out of jail. let's get a couple of facts down. this is not a decrease in spending. this is is a decrease in the rated increases. instead of spending going up, it will go up like that. >> neil: only network that explains it. >> we are and the americans have a right to know.

this was originally his idea. >> neil: the runway thing. the thinking if you lay off or even brief period of time a number of union runway operators by definition you shut down those runways? >> that is up to the president. there is no budget, congress hasn't given him a budget. he has dollars to spend in each department as he sees fit. >> neil: without giving the discretion to see what he thinks. >> so, mr. president you have x billions of dollars running the tsa are you going to make people wait in line for five hours and shut down the runs ways or some other ways to nip and tuck. the nimg and ticking is not into the budget it's in the increase of the budget. if for example he has to cut 2%. instead of hiring hundred more soldiers or hundred more tfs a agents he hires 98.

he can't live with that? he doesn't deserve this kind of discretion. he is somebody who knows thousand balance these things should have that discretion. >> neil: what is kind of weird, i don't care if people write on this issue but why have a meeting on friday when all this is taking effect? >> i don't know the answer to that. i'm surprised candidly the republicans are standing firm. it is far easier in this environment to spend less money than to tax the people more. people are taxed up to the hilt and it won't get through the congress. the sooner the democrats, the president, the labor unions, those folks recognize that spending is out of control and we can live our lives with a little less spending the better off we all will be. >> neil: i will never, ever dawn on them. always good to see you. in the meantime, do you want to

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>>. >> neil: you want to cut spending without cutting defense. in spending cuts it might save jobs. for example, do you know how much it cost it can type about social decision-making fish can make. i have no idea and to create a video called it shows them showing off recipes. it has tom coburn all fired up. senator, good to have you. with just a mild overview you were doing here, you came up with a lot of stuff. this is the type of duplication the president, we're going to get to that in a second. but all of this, it's all coming on friday. >> well, you know, i have a fundamental disagreement with

the president on the amount of duplication and amount of waste in the federal government. government agencies are not the most efficient organizations in the world, but certainly easy to highlight stupidity in how they spend the money. you can eliminate the stupidity and wouldn't solve our problems with this sequester. it does beg the question, who is running these organizations that are continuing to allow money to be wasted. we ought to be asking the hard questions. >> neil: now, when you went through a lot of this duplication and even as i'm looking now from the pentagon to develop beef jerky rollups, maybe that is fine idea. why wasn't this part of a back-up spending cut plan in lieu of the sequestration cuts. i think most people, most ration people of both parties could

agree this is easier stuff to go after than the stuff that supposedly going after you would think all but cripples humanity? >> i think it's all about leadership and priorities in agencies. the president can offer lots of things to the congress on things he would like to change and we'll deal witnessed and offer legislation to do that. this has been going on for 18 months. president has known we're under a sequester and whole idea was not to ever get here. the fact is as we are here and we need to make these cuts and how we make them is important in terms of the amount of pain people will feel. what we ought to do is give the administration as much flexibility to make these cuts. remember, the government is twice the size it was years ago. this is 2% of the government but 7% or so in the discretionary or maybe 11% in the pentagon over the next ten years.

but even with these cuts, we'll still be spending more money in the next year than we are spending today. so the question ought to be to the american people ought to be asking, are we getting value for the money that we are spending and the answer to that is half the time, no. number two, shall we spending our money the first dollar on the thing that most important for the country. the answer to that oftentimes is no. >> neil: you pointed out and that this idea that waste, fraud duplication and chump change is wrong. >> it is wrong. >> neil: how do you go after more of substantive cuts. reality there s, there is a lot in this duplication, in this silliness, when you add it up, you are doing a lot of cutting? >> yeah. just through the first two reports they came out, over three years we're going to have

a total review of the federal government on duplication. on the first two reports, we had $380 billion in programs that have duplication within them. it's easy in my mind now -- i think the president would disagree with me -- in my mind to get rid of $50 billion right there a year. we have 57 job training programs all but three of them do the same thing that the others do. there is month metrics on it. the president when he speaks about that thinks we should clean that up but spend the same amount of money. think we should clean it up and spend half as much money. i think there are things we can do. that is $90 billion over 10 years and it's easy. >> neil: as a republican, you have no sacred cows and you looked at overlap, to your credit you are saying fair game.

very good having you. >> all right to that, even more cuts we could be making by the military guy himself. army ranger, mark lucas joins us now. very good to have you with us. many, particularly in the republican party, feel that defense is sacrosanct but it doesn't mean that there isn't room to cut. obviously it carries a great deal more weight when someone like you says that than a fool like he says that, but detail what you are talking about? >> i've been in the military for over ten years. i served as platoon leader along the afghan border. i have seen my share of waste. if you look at the gao report the pentagon has wasted over $70 billion. i think the pentagon can help lead the way these doomsday scenarios are not true. american leadership within the

military will make the necessary cuts and return to a fighting force that is more lethal and more efficient than ever. >> neil: what are some areas where you can get obvious savings without jeopardizing security? >> the defense logistics agency purchased 50% more equipment that was needed. $7 billion worth of army equipment that sat on warehouse shelves collecting dust. what we are looking in washington, d.c. is courage. we need that in d.c. we need people to make real cuts and give american people the truth. even after the sequester we're going to spend $15 billion more this year than we did in 2012. >> neil: do you think in terms of some of the silly programs that dumb stuff that other agencies do that we'll ever get a handle on this? or is it so out of control now that even talking about reining

in the growth of spending within the respected agencies is not going to happen? >> we have to. we are at a point in this country where we need to make real cuts. after returning home from afghanistan the greatest threat to our nation's security is not overseas. it's not pakistan or north korea it is here at home. our national greatest security threat is our deficit. we have to fix this problem. it will be up to my generation to tackle the cuts and let the people know we can cut the size of government including the military and come back and redeploy the new combat theaters and do so even more lean and even more lethal way. >> neil: well put. thank you very much. good seeing you. thanks for having me. >> neil: he may be the boss, but why are so many of his own party trying to take him out? and friday showdown, does the speaker need to keep this up?

>> we should not have to move a third bill before the senate gets off their ass and begins to do something. for your first day? yeah. ♪ dad: you'll be fine, ok? girl: ok. dad: you look so pretty. ♪ i'm overprotective. that's why i got a subaru.

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. >>. >> neil: the governor gets the snub. chris christie not invited to speak at organizers and ripping over republicans. republican strategist says it's time for sea to pack it in as a group. you argue that they are killing their golden goose, right? >> i absolutely think they are. they are trying to send a message to chris christie, shape up you turn coat. you sold us out on medicaid expansion and you sold us out on hurricane sandy and didn't have to hug the president so graciously there during a hurricane sandy. the fact remains, chris christie is essost popular republican governor and right now the republican grand is

frankly thinking of cement and water. we are at 20%. i think if we want to rebrand the party for the future, we might include the most important governor right now in the polls. >> neil: and like him not, to not even invite him, you as an organization look pretty small, doesn't it? >> i think it does. it feeds into the mainstream narrative. republican party is faulting and we are inflexible. here is somebody that is known as no-nonsense guys and appeals to independents and even minorities on the republican side. it's kind of shocking at a time when we really need leaders to step forward we actually have one that has the kudos in the national polls and we decide to snub him. i think its terrible idea but it could benefit chris christie if he wins by reelection in the state of new jersey.

>> neil: if it's a moot point the republicans may run lucifer, anyone that may improve their chances? >> unfortunately that is bler we are at. we can't get on the same page. we have internal infighting that the mainstream media and what we have to do, hey, here is different brand. chris christie is seven tal to that equation. >> neil: no more more popular than union houses and no one more popular in blue state. look, it is what it is. i wanted to switch gears. we talk about governor christie's frankness and bluntness which is the flip side but he was cursing out john boehner who is cursing out folks in his own. i wanted you to react to this.

if republicans did more of this, they would be getting more of a positive reaction. >> we should not have to move a third bill before the senate gets off their ass and begins to do something. >> neil: this is the same guy who told the senate majority leader to you know what himself. i think when i hear stories like that, it gets away from the politicians who say one thing behind someone's back and quite another thing in front of them. i know they don't get along but chris christie is being very blunt? >> john boehner is frustrated because he knows the republicans are losing the message game on the sequester. and the frustration is boiling over because president obama is saying armageddon is raining down on friday. he says i tried to mitigate this twice. you have a senate that your party controls and they get a

free pass. you see that in polls. there was a poll out with pew that said, who is more to blame for the sequestration, president obama or congressional republicans? three actors here. i got the senate and house and white house. frankly, harry reid by ducking responsibility he is getting absolved from everything. >> neil: good stuff. ford o'connell, thanks very much. it's enough to make democrats sick. the clock that has some of the draculas running from it, like a cross. >> clearly it's a political prop to message ideologically. [ male announcer ] how do you measure happiness?

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>>. >> neil: like a cross to the vampire. it's democrats who are sick. they don't like seeing it at congressional hearings and republicans say it's a timely reminder of the debt we are amassing. john stossel says the clock should say and remind both parties what is really at stake. >> the president says sequester cuts are using a meat cleaver on the budget. if only that were true because i say, go. because it affects the younger people like we babyboomers do this. >> i need take this phone? >> i need this. i need this, to take the scooter. >> hey, give that back. >> taking things from kids is nice for me but the rest of you

have to deal with the debt bomb. >> neil: he did take that stuff. that kid is still waiting outside the building. you mean, its good analogy but you are right. >> we are taking from them. the entitlement problem, the medicare and social security that is going to bankrupted us and we older people, i have paid in all my life but they don't know they are getting three to four times what they paid in. >> neil: or for the matter, nobody is taking it away from the current beneficiaries, it's all about phasing in, their grandkids either they don't care about their grandkids and lot of grandkids are awful. [ laughter ] >> and maybe not deserving but your point is. >> we want them to work in the

economy so pay for our old age. >> neil: you raise a good point about this whole thing on friday with all these cuts coming. the entitlements and discretionary spending? >> they aren't cuts. the difference between the sequester and not, one goes up anyway. look at the red line is without the sequester, blue with it, hardly any difference. >> neil: you are still increasing spending. there are going layoffs and work stoppages. i take nothing away from the effect of that, but it is small in the scheme of things. the earlier pointed you were making, this is difficult for us now with this, when we have to put the pedal to the metal? >> whether it's really time to get the meat cleaver because this is what we should do to the

budget. i promise, i'm not going to hurt you with it. >> neil: you are nasty. >> you are not o'reilly. >> neil: i dare you take that on o'reilly's show. it's not right. >> how come you say that? >> neil: we're going to let john go. john stossel, thank you very much. all right. pope benedict swan tour continues but only thousands of catholics descending on the vatican enough? he is going back. save your prayers for what he does

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to the vatican you could see two popes for the price of onem pope benedict is retiring there and the new pope will settle in therement i don't care what the holy seas says, i see problems. pope benedict says he wants to pray and study. trouble ised twowork within an ancient stone's throw. they will be a few yards apart. both men will be served by the same archbishop and dressed in kind of the same outfit. no wonder who vatican-based cardinals are privately grumbling, especially though cardinals aren't supposed to grumble. the concern is just going to confuse folks. like the mess in 1980 when ronald reagan was toying with the idea of putting gerald ford on the ticket to be his running mate. ford's folks would say that their guy would be a co-president. reagan picked the kabosh and ultimately picked bush who became a president anyway.